Future of Energy
The Future of Energy is a dynamic strategy designed to capitalize on opportunities across both the traditional and alternative energy landscape. We believe a strategy that recognizes the reality of the world’s energy demands and uses a long-term, fundamentally driven view to blend traditional with alternative sources offers improved risk-adjusted returns.
WHY COHEN & STEERS
Forward-thinking approach
We believe a high-conviction, actively managed approach that includes both traditional and alternative companies offers broader exposure and better represents the future of energy.
Balanced fundamental analysis
We employ a disciplined investment process that leverages proprietary resources and emphasizes a comprehensive cyclical/secular sector framework alongside detailed bottom-up security analysis and research.
Experienced team
Our global energy investment team averages 20 years of experience with specialist representation across Cohen & Steers' Real Assets Investment Platform.
Why Future of Energy
Secular tailwinds
Despite advancements in energy efficiency, we anticipate global energy consumption will continue to rise annually through 2040 due to population and economic growth. Meeting this demand will require a mix of traditional and alternative energy sources.
Innovative approach
A dynamic allocation to both traditional and alternative energy offers attractive opportunities across the energy value chain. The strategy seeks to solve the flaws in existing energy strategies, which most often offer an either/or approach to investing in energy.
Opportunities for better investor outcomes
The dynamic approach of investing in both traditional and alternative energy offers the potential for attractive risk-adjusted returns.
As an asset manager investing in liquid real assets, we believe the Cohen & Steers Future of Energy strategy provides opportunities to invest across both traditional and alternative forms of energy.
The Cohen & Steers Future of Energy strategy is poised to benefit from the active management expertise of our tenured investment team. With an average of 20 years of investment experience, our portfolio managers leverage the deep knowledge of our Global Real Assets Investment Platform.
This combination allows us to navigate the entire energy value chain by seeking to identify superior investment opportunities across both traditional and alternative energy sources, as well as related businesses critical to the evolving energy landscape.
Many strategies fail to provide a comprehensive energy allocation within the portfolio. Cohen & Steers’ Real Assets Platform of investment specialists covers the entire energy value chain from beginning to end across multiple asset classes:
- Infrastructure (including midstream energy)
- Natural resource equities (including upstream and downstream energy)
- Macro
- Real Assets Multi-Strategy
Looking ahead, we see attractive opportunities across the entire energy value chain in both traditional and alternative energy. As a result, we crafted a process that utilizes forward-looking analysis to provide a dynamic allocation to both forms of energy, while seeking to reduce the concentration and volatility profile within traditional energy.
FEATURED INSIGHT
Investing in the future of energy
Global energy demand is poised for substantial growth in the coming decades, which is creating attractive investment opportunities across the alternative energy landscape and the traditional energy value chain.
April 2024 | 1 min
WHY INVEST WITH US
Delivering value to our clients
Cohen & Steers has been at the forefront of real assets investing for more than 35 years. Our dedication, combined with our drive for excellence, has led us to build a foundation that is designed to provide sustainable outperformance relative to our peers.
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PORTFOLIO MANAGEMENT
An experienced team
+ Energy analysts and specialists resources across the Cohen & Steers Real Assets Investment Platform.
PORTFOLIO SPECIALIST GROUP
Supporting our investment team and clients
The investment objective of the Cohen & Steers Future of Energy Strategy is to provide attractive total return, comprised of income and price appreciation designed to capitalize on opportunities across both traditional and alternative energy.
The philosophy that guides the strategy is based on the following principles:
Secular tailwinds are driving increased energy demand:
We expect global energy demand to grow year over year through 2040 through three fundamental drivers: population growth, economic growth and energy efficiency. Meeting this demand will require a mix of traditional and alternative energy sources, offering attractive investment opportunities across the energy spectrum.
Innovative approach to access the complete energy universe:
A dynamic allocation to traditional and alternative energy will maximize opportunities across the energy value chain. The strategy will provide comprehensive access to the energy universe, while offering a portfolio designed to capture opportunities in the ongoing evolution of energy markets and solve the flaws in existing strategies.
Opportunities for better investor outcomes:
The combined approach of traditional and alternative energy offers attractive risk return profiles and the potential for mitigation of inflation impact.
APPROACH
Our investment process
Our investment process seeks to generate alpha via a dynamic investment solution to accessing the evolving energy landscape. We seek to accomplish this through three key alpha drivers:
Universe design
Initial universe construction designed to address flaws found in many existing strategies and dynamically allocate to both traditional and alternative energy markets
Traditional vs alternative breakdown representative of Cohen & Steers fundamental view on future energy market composition
Alpha drivers
Alpha generation derived from three distinct levers:
Portfolio construction
High conviction actively managed strategy that seeks to capitalize on best ideas within the redefined energy universe
A new power paradigm: Rising electricity demand and the implications for listed infrastructure
Utilities, midstream energy and nuclear power are poised to benefit from growth in data centers, manufacturing and the electrification of the economy.
Investing in the future of energy
Global energy demand is poised for substantial growth in the coming decades, which is creating attractive investment opportunities across the alternative energy landscape and the traditional energy value chain.
Why the consensus approach to energy investing is flawed
Investors have increasingly viewed energy through an either/or lens, taking a zero-sum view, and limiting their investments to traditional or alternative energy forms. This is a flawed approach.
Changing the narrative from ‘energy transition’ to ‘energy addition’
Aggregate energy demand will continue to increase in the coming decades, which is creating attractive investment opportunities across both the traditional and alternative energy landscape.
InvestmentNews: Cohen & Steers strategist sheds new light on investing in energy sector
Portfolio Manager Tyler Rosenlicht joined InvestmentNews’ IN the Nasdaq to discuss his outlook for the future of energy and why he believes existing investment strategies provide a limited view of the asset class. He discusses why global energy demand is driving the need for energy addition, requiring both traditional and alternative energy to satisfy this demand.
Listed infrastructure: Factors aligning for renewed investor attention
We believe an attractive entry point for listed infrastructure is emerging, considering the potentially favorable macro environment and the asset class’s attractive valuations relative to broader equities.
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Need to contact us?
We’d be happy to answer questions about our investment solutions or any corporate-related inquiries.
We consider the information in this communication to be accurate, but we do not represent that it is complete or should be relied upon as the sole source of suitability for investment. Investors should consult their own investment professional with respect to their individual circumstances.
Past performance does not predict future returns. Risks involved with investment, including potential loss of capital, are substantial and should be carefully considered. The views and opinions are as of the date of publication and are subject to change without notice. There is no guarantee that any historical trend illustrated above will be repeated in the future, and there is no way to predict precisely when such a trend will begin. There is no guarantee that a market forecast made above will be realized. Active management is not guaranteed to outperform the broader market index.
Important risk considerations: Investing involves risk, including entire loss of capital invested. There can be no assurance that the investment strategy will meet its investment objectives. Diversification is not guaranteed to ensure a profit or protect against loss. An investment in the energy sector involves risks that differ from a similar investment in equity securities, such as common stock, of a corporation. Investors will subject to more risks related to the energy sector than if the investment strategy were more broadly diversified over numerous sectors of the economy. A downturn in the energy sector of the economy could have a larger impact on the investment strategy than on an investment strategy that does not concentrate in the sector. At times, the performance of securities of companies in the sector has lagged the performance of other sectors or the broader market as a whole. Energy sector investments can be volatile due to fluctuations in commodity prices, availability of resources, slowdowns in construction, reduced. No representation or warranty is made as to the efficacy of any particular strategy or the actual returns that may be achieved.